LEEKES GROUP ANNOUNCES PURCHASE OF COLE’S HOME FURNISHERS

The Leekes Group has announced its acquisition of Cole’s Home Furnishings, a family owned furniture retail business with three stores in the West Midlands.

The multi-million pound deal sees Leekes take ownership of Cole’s stores in Bilston (near Wolverhampton), Bedworth (near Coventry) and Fenton in Stoke- on-Trent, along with the company’s delivery fleet, existing stock and order book.

Emma Leeke, Commercial Director of Leekes, said “We are thrilled to be able to announce that Leekes is expanding. Cole’s Home Furnishings is a brand that shares many common values with Leekes and is a fantastic fit with our business portfolio.

Through this purchase we are able to realise our vision of expanding the Leekes brand into new regions in England.

Our intention is to build upon Cole’s reputation as a retailer of quality furniture by adding kitchen, bathroom, conservatory and glazing departments as well as introducing a wide range of home accessories. We will develop each of the three sites to create a department store format and broaden the appeal of what is already a well respected local retailer.”

Bob Chittleborough, Managing Director of Cole’s Home Furnishings, said “The deal with Leekes Group is an excellent outcome for all parties. Cole’s has a reputation for excellent service and selling quality brands. Leekes share our principles and it’s great to hand over the reins to another family owned business.”

The acquisition of Cole’s Home Furnishings increases the retail space owned by Leekes by 160,000 sq. ft to a total of 650,000 sq. ft. The news of Leekes’ expansion follows its decision earlier this year to open conservatory and kitchen showrooms in The Garden Centre Group, formerly trading as Wyevale Garden Centres, in Wiltshire, Somerset and Gloucestershire.

Leekes agreed a substantial funding package with Barclays Bank in 2008, and Barclays have provided an additional facility to finance the acquisition of Coles. Emma Leeke added, “We are grateful to Barclays Bank who continue to be our partner as our business expands both its retail and leisure interests.”

Phil Rouse, Head of Wales and Southwest Strategic Debt Finance at Barclays, said “Barclays is committed to using our industry expertise and specialist support to deliver effective and innovative solutions to quality businesses in Wales. This deal demonstrates that commitment, and shows that debt funding is available to support the right propositions. Our relationship with Leekes is still in its infancy, yet we are delighted to have been able to help such a prestigious local business in achieving its goal of further expansion.”